Previous Page  12 / 28 Next Page
Show Menu
Previous Page 12 / 28 Next Page
Page Background

In its latest half yearly review of the hotel

industry, Christie & Co said the market has been

enjoying” a stellar period as one of the few

sectors to fully benefit from the response to the

EU referendum.

This has been underpinned by the increase

in tourism because of the decline in the value of

sterling which boosted the number of arrivals from

overseas to 39.9 million last year, an increase of 6.2

per cent on 2016.

Sustained consumer demand has resulted in an

increase of 19,000 hotel rooms in 2017/18, according

to AM:PM. In turn this brought in increased numbers

of investor and “an unparalleled variety of buyers

from across the globe, showing that international

interest in the UK has not slowed”, said Christie.

Demand for quality hotels remains high, but also

competitive, which is reflected in higher sale prices.

“Big ticket transactions are becoming increasingly

frequent, said Christie, “with investor appetites

clearly geared towards more substantial deals,”

In the second half London alone is due to have

9,000 new hotel rooms and there has been an

improvement in the rate of return on each room in

the regions, where many new hotels are also being

built, such as Liverpool, Manchester and Stoke.


Commercial Property Register

October - December 2018






construction industry has experienced a variable year in terms of performance, which has brought

some concern about its ability to meet all the needs of the UK economy. Blane Perrotton of Naismiths

said: “After a turbo charged summer, the ship has steadied and an uneasy calm is returning to the

construction industry. July’s mini explosion in both output and sentiment was an expression of pent-up

demand rather than a permanent turn-round. With the Brexit storm clouds still looming on the horizon,

the current modest progress is as much as can be expected.”

It is conventional wisdom to

bemoan the existence of the

north/south divide and what

damage it causes to the economy.

But another way of looking at

this subject at the moment is to

examine the existence of optimism

in the major northern cities that

are less influenced by the wave of

media gloom and political agitation

found in London and the south.

Were this not true, how is it that

Manchester could be heading for

another record year for city centre

take-up. The mood in Manchester

and other areas of the North West is

far from being gloomy and this helps

their economic performance.

They do not want to wallow in

recriminations about the state of

the country as Brexit approaches,

although they are aware of the

dangers entailed in the process.

They want to get on and improve

their cities.

It is a burning desire in the

Potteries where the decline of their

world-leading traditional industry

has been so damaging. But ceramic

firms have held on and meet foreign

competition and the city authorities

have plugged away at regeneration

which has resulted in a vibrant and

improving cultural quarter.

It all takes time, as Allied





Spinningfields scheme in Manchester

which has been such a vital element





Architectural quality has improved

enormously and now we have the

fine St Peter’s Square development

pushing the city further up the

ladder of global cities.

An indication of the current

confident mood in Manchester is

that the big NOMA development

is moving along with a contractor

appointed for the £34 million

refurbishment of Hanover, a

city centr warehouse.

It is being remodelled to provide

8,434 sq.metres (91,000


) of

Grade A offices and 1,672 sq.metres



) of retail and leisure.

The developers, Hermes and the

Co-op, hope to attract technology

and creative companies to the property

in the em rging district for innovative

businesses. Ben Tolhurst f Hermes

said: “Hanover will offer prime

heritage space that will appeal to

businesses wanting the connectivity

to Victoria station and the amenities

offered by the Northern Quarter”.

On the move


One of the more interesting

deals in Manchester brought

the largest Indian bicycle maker

to the city to open a £2 million

design centre.

Hero Cycles produces one in 20

of all the bikes produced in the world

and is now likely to open a production

plant in the city, which is well known

for being the home of British Cycling.

Ideally, Hero would like to supply its

top bikes to the UK team.

Pankaj Munjal, Hero’s Chairman,

pointed to Manchester’s history of

innovation, citing computers and

graphene as examples, as another

reason for the move, together with

the large student population.

Hero already owns Avocet, a

Manchester based bike designer that




If any company has influenced

the life of a major city, then

surely it has to be Peel with its

huge sch me for Liv rpool

following on from the magic

it has created in S lford.

This is evident from JLL whose

Steph n Hogg said: “Growth in

Liverpool, in part led by

regeneration schemes such as

P el’s £5.5 billion Liv rpool Waters

and the new £1 billion knowledge

quarter, is drawing further interest

from institutional investors”.

Such is the success of the office

market that HMRC’s leasing of the

32,515 sq.metres (350,000



India Building, which is owned

by Shelborn Asset Management,

has created something of a

supply crisis.

The problem has been caused

by the city’s success in the past year

which has taken so much ut of

the mark t through letting and

c nversion to resid ntial whil

developers sat on their h s so

that a shortage becam inevitable.

Noting the shortage of available

space, Ian Steele of GVA said:

“Gi en the current levels of

d mand and absorption rates, it is

likely that this supply will diminish

wi hin the next 6 to 12 months,

leaving the city without a y

buildings that can offer occupiers

large Grade A floorplates”.

He added that this is likely to

reduce future levels of demand as

well as Liverpool’s ability to attract

large scale inward i v stment.

One major scheme going ahead

is in Lime S ree , with ISG set to

deliver the £39 million mixed use

project for a partnership of Neptune

D velopme ts, Liverpo l City

Cou cil and Sigma C pital o a site

owned by he Curlew Student Trust.

The scheme will have 5 retail

units, a 10 storey building of

student accommodation with 412

units and a Premier Inn with 101

bedrooms. Andy McLinden of ISG

commented: “The Lime Street area

has been in desperate need of a

catalyst scheme to revitalise this

key thor ughfare ear the centre

of the city. The mixed use sch me

represents the first ph se f the

knowledge quarter master plan

and is a hugely important regional

project that will enhance the

character and aspiration of this

key gateway in the city”.





Through boom and bust,

Manchester continues to

perform as it follows the long

settled path of being a

world-class city to match its

soccer teams and music scene.

The ambition is being stepped

up at MIPIM with an enlarged

corporate participation in a pavilion

on the Croissete. The market is also

holding up in all areas with the city

centre notching up a big take up figure again and steady

performances in Warrington, south Manchester and Salford Quays

to complete the picture.

The outlook for new development in the city centre is favourable,

particularly because of a shortage of prime stock and further indicated

by the forward momentum of the ajor NOMA scheme by the

Co-op and Hermes. Bew development is ls occurring elsewhere in

the region, such as another town centre project in Rochdale.

An important part of the equation is that former Chancellor of

the Exchequer, George Osborne’s enthusiasm for the Northern

Powerhouse is continuing with sufficient energy behind the

campaign to make it work.

The other important dimension is that Liverpool appears to have

broken out of the decades long cycle of decline and has lots of

positive things happening in the economy and property industry.

The fact that it has a growing city centr population of young

professionals surely says something about its attractions.



Frankel Bro

are hosting an open

day on Friday 17th March to

showcase 910 Birchwood Boulevard

Business Park, their latest

refurbishment of an 8,500


detached office building in

Birchwood, Warrington and also to

discuss further plans for Birchwood

Boulevard Business Park. All are

welcome - con act the agents,

BE Group or K ight Frank.

NW Editorial March 2017:Layout 1 6/3/17 16:04 Page 4